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Chapter 3

Organizing
Definition
Organizing is the second function of
management,
which
involves
the
assignment of tasks, the grouping of tasks
into departments, and the allocation of
resources to departments.
Organizing is deciding how best to
group
organizational
activities
and
resources.
Just as the child selects different kinds
of building blocks, the manager can
choose a variety of structural possibilities.
And just as the child can assemble the
blocks in any number of ways, so too can
the manager put the organization together
in many different ways.
Basic Organizing Elements that managers
must address:

• designing jobs
• grouping jobs
• establishing reporting relationships between
jobs
• distributing authority among jobs
• coordinating activities between jobs
• differentiating among jobs
According to Edgar Henry Schien, a
prominent psychologist, all organizations
share four characteristics:
•
•
•
•

Coordination of efforts
Common goal or purpose
Division of labor
Hierarchy of authority
Benefits of Organizing
Productivity increases when human
and material resources are effectively
organized.
Synergism- combining efforts to
collectively accomplish the tasks that
would exceed simple sum of individual
efforts. It is achieved through the
integration of specialized tasks.
Effective organizing provide the
following benefits:
1. Division of work that avoids duplicate, conflict, and
misuse of resources, both material and human.
2. Clarity of individual performance expectations and
specialized tasks.
3. A logical flow of work activities that can be
comfortably performed by individuals or groups.
4. Established channels of communication that enhance
decision making
5. Coordinating mechanisms that ensure
harmony among organization members
engaged in diversified activities.
6. Focused efforts that relate to objectives
logically and efficiently.
7. Appropriate authority structures with
accountability to enhance planning and
controlling throughout the organization.
Management
effectiveness
is
improved by obtaining the right resources ,
organizing management and employees
to work together toward organizational
objectives, and efficiency is improved by
using the most productive combinations of
material and human resources.
Effectiveness is doing the right things,
whereas efficiency implies doing things
right.
Decisional Roles of Managers
Henry Mintzberg identifies four decisional roles that
reflect managers’ choice-making responsibilities:
1. Entrepreneur. Some mangers do not start their own
firms, but for complex organization, they act as
entrepreneurs by discovering new ways to use resources
and technology.
2. Disturbance Handler. Managers are for resolving
problems, which is their most stressful and challenging
role.
3. Resource allocator. This requires
careful proportioning of scarce
resources such as time, money,
material
or
manpower
to
accomplish all that is expected.
4. Negotiator. Negotiating extends to
internal and external managerial
activities such as negotiating
materials or supplies prices and
terms, wages and conditions of
employment, sales and union
contracts.
2335

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2335

  • 2. Definition Organizing is the second function of management, which involves the assignment of tasks, the grouping of tasks into departments, and the allocation of resources to departments.
  • 3. Organizing is deciding how best to group organizational activities and resources.
  • 4. Just as the child selects different kinds of building blocks, the manager can choose a variety of structural possibilities. And just as the child can assemble the blocks in any number of ways, so too can the manager put the organization together in many different ways.
  • 5. Basic Organizing Elements that managers must address: • designing jobs • grouping jobs • establishing reporting relationships between jobs • distributing authority among jobs • coordinating activities between jobs • differentiating among jobs
  • 6. According to Edgar Henry Schien, a prominent psychologist, all organizations share four characteristics: • • • • Coordination of efforts Common goal or purpose Division of labor Hierarchy of authority
  • 7. Benefits of Organizing Productivity increases when human and material resources are effectively organized.
  • 8. Synergism- combining efforts to collectively accomplish the tasks that would exceed simple sum of individual efforts. It is achieved through the integration of specialized tasks.
  • 9. Effective organizing provide the following benefits: 1. Division of work that avoids duplicate, conflict, and misuse of resources, both material and human. 2. Clarity of individual performance expectations and specialized tasks. 3. A logical flow of work activities that can be comfortably performed by individuals or groups. 4. Established channels of communication that enhance decision making
  • 10. 5. Coordinating mechanisms that ensure harmony among organization members engaged in diversified activities. 6. Focused efforts that relate to objectives logically and efficiently. 7. Appropriate authority structures with accountability to enhance planning and controlling throughout the organization.
  • 11. Management effectiveness is improved by obtaining the right resources , organizing management and employees to work together toward organizational objectives, and efficiency is improved by using the most productive combinations of material and human resources.
  • 12. Effectiveness is doing the right things, whereas efficiency implies doing things right.
  • 13. Decisional Roles of Managers Henry Mintzberg identifies four decisional roles that reflect managers’ choice-making responsibilities: 1. Entrepreneur. Some mangers do not start their own firms, but for complex organization, they act as entrepreneurs by discovering new ways to use resources and technology. 2. Disturbance Handler. Managers are for resolving problems, which is their most stressful and challenging role.
  • 14. 3. Resource allocator. This requires careful proportioning of scarce resources such as time, money, material or manpower to accomplish all that is expected. 4. Negotiator. Negotiating extends to internal and external managerial activities such as negotiating materials or supplies prices and terms, wages and conditions of employment, sales and union contracts.